Shares sweetener for Royal Mail workers

Postal workers are to be given shares in a privatised Royal Mail, Vince Cable announced today.

The Business Secretary said the move to give at least 10 per cent of shares to staff would represent the biggest employee share scheme of any sell-off in 25 years.

The move, seen as crucial to winning postal workers' support, will take place alongside an injection of private capital needed to turn the company around.

Mr Cable said that Lib-Dems were the "first and only party to call for an employee stake and we are now implementing it in government".

He said that the plans did not include the sale of the Royal Mail's post office business or a programme of closures as there was under Labour.

The Communication Workers' Union is expected to oppose the move. General secretary Billy Hayes said: "The public owns 100 per cent of the Royal Mail but the Government wants to sell nine per cent to the very people who got this country into financial crisis."